HOA Legi-Slate

Not surprisingly, the City and County of Denver is not the only local government that is making an effort to address its outdated codes. The City of Centennial is currently rewriting their Land Development and Zoning Codes and has been asking for comments from its constituents regarding the proposed changes. The draft codes may be viewed at the following website: www.centennialcodeupdate.com.  Questions may be posed on the website.  Answers to such questions will be posted in the Q&A section of the website.

The Centennial City Council plans to adopt the Land Development Code (LDC) in December 2009, with the zoning code revisions to follow some time in 2010.  Rita McConnell in the Planning Department at the City of Centennial can answer any questions. She can be reached at (303) 325-8000.

Posted By Eric R. McLennan In Legislative Miscellaneous 0 Comments Permalink

On January 1, 2009, the ADA Amendments Act of 2008 (ADAAA) become effective. The previous law prohibiting employers with 15 or more employees from discriminating against individuals in employment, public accommodations and other areas remains the same but now employers must comply with the new set of rules. The Amendments significantly broaden the existing definition of a “disability” defining it as “a physical or mental impairment that substantially limits one or more life activities, which include but are not limited to: caring for oneself, performing manual tasks, the operation of major bodily functions, seeing, hearing, walking, standing, breathing, etc.”  

Another critical difference is the interpretation of the meaning of “substantially limits a major life activity” which is now defined as “materially restricts a major life activity.” Further, the Amendment states an impairment may be considered a disability if it is episodic or in remission. The ADAAA also overturns the precedent that the determination of whether impairment substantially limits a major life activity should be made without regard to mitigating measures or devices. These changes make it easier for individuals to demonstrate that their impairment can be considered a disability. 

Lastly, the ADAAA has lowered the standard for individuals to prove employer discrimination. In order to protect your association, a review and training for supervisors is recommended. You should also make sure all job descriptions detail all functions of the job. 

Posted By Loura K. Sanchez In Legislative Miscellaneous 1 Comments Permalink

Bipartisan lawmakers have introduced federal legislation that would allow community association owners to display religious symbols, objects and signs on the exterior of their dwelling.  This proposed law is a part of the Freedom of Religious Expression in the Home Act which according to the sponsors of the Act, was needed because of a recent federal appeals court ruling that upheld the right of a condominium association to ban the affixing of mezuzahs on doors.   If passed, the new law would specifically prohibit rules that ban the display of religious symbols on the outside of homes unless the rule is "reasonable and necessary to prevent significant damage to property, physical harm to persons, a public nuisance or similar undue hardship."  Click here to view the entire Act.

Posted By Loura K. Sanchez In Legislative Miscellaneous 0 Comments Permalink

The approval of HB 08-1270 has caused us all to be more aware of energy efficiency issues. Is your association doing what it can to reduce energy consumption? Did you know that associations may be available for tax credits of 30% for installing solar devices?  The average time to recoup the cost of a solar system to heat your community pool maybe as little of 5 years and loans may be available to make such purchases through banks like Community Association Banc. 

In addition, the Denver Water Board offers rebates for the installation of rain sensors or sub-meters and Excel Energy also has various energy efficiency programs with financial incentives available. 

Posted By Loura K. Sanchez In Legislative Miscellaneous 0 Comments Permalink

On January 15, 2008, Representative Morgan Carroll introduced House Bill 08-1135 aimed at addressing issues relating to common interest communities in Colorado. In particular, Representative Carroll's bill provides the following:

1. It references in the Colorado Common Interest Ownership Act ("CCIOA") the provision of the Federal Fair Housing Act which provides that homeowners associations shall not prohibit "reasonable modifications to a unit as necessary to afford a person with disabilities full use and enjoyment of the unit."
While including a reference to the Federal Fair Housing Act in CCIOA is not necessary from a legal perspective, we don't have any problem with it being referenced in CCIOA for informational and educational purposes. 

2. Homeowners associations are prohibited from levying a fine against a unit owner for a violation of a covenant or rule unless:

    A. The association has adopted a written policy governing the imposition of fines. (This is currently a required policy under Colorado law.)

    B. The policy includes notice and the right to a hearing before an "Impartial Decision Maker" prior to a fine being levied. An "Impartial Decision Maker" is defined as "a person or group of persons who have the authority to make a decision and do not have any direct personal or financial interest in the outcome."

    C. If the Impartial Decision Maker determines the unit owner did not violate the covenant or rule, the Association may not assess against the unit owner's account any of the costs or attorneys fees incurred in asserting or hearing the claim.
These provisions seem consistent with the requirement currently in Colorado law that homeowners associations must have a responsible governance policy that addresses enforcement of covenants and rules, including notice and hearing procedures and the schedule of fines. While we have some concern that homeowners may misinterpret the definition of "Impartial Decision Maker" - if this bill is passed, we will continue to advise our clients to comply with the policy of their associations governing enforcement of covenants and rules.   

3. Endorses and encourages associations, unit owners, managers, declarants and all potential parties to disputes relating to common interest communities to utilize public and private resources for alternative dispute resolution to resolve disputes.

    A. Any controversy between an association and a unit owner may be submitted to mediation upon agreement of the parties prior to taking legal action.

    B. Either party to a mediation may terminate the mediation process without prejudice.

    C. If a mediation agreement is reached, it may be presented in court as a stipulation. If either party violates the stipulation, the other party may seek relief in court.

    D. The governing documents of an association may specify situations in which disputes must be resolved by binding arbitration or another means of alternative dispute resolution.
We continue to support the concept of alternative dispute resolution as a method to resolve conflicts before they become full blown disputes and will advise our clients to follow the requirement currently in Colorado law that associations have in place procedures addressing disputes arising between the association and unit owners. 

 We will keep you posted on action relating to this bill during the legislative session. We also look forward to hearing what you think of HB 08-1135 and encourage you to Post a Comment to this post by clicking on Comments.

Posted By Loura K. Sanchez In Legislative Miscellaneous 14 Comments Permalink

1. Every member of the board must receive a notice in writing stating the action to be taken and the time by which each member of the board must respond.
2. Every member of the board, by the time stated in the notice, must:
   Vote In Writing for such action, or 
   Vote in Writing against such action, or
   Abstain in Writing from voting, or
   Fail to respond or vote, AND
   Fail to demand that action not be taken without a meeting.

Posted By Molly Foley-Healy In Legislative Miscellaneous 4 Comments Permalink

If you have ever lived in or served on the board of a homeowners association, you know that from time-to-time homeowners will disagree with provisions of the governing documents of the association or how the association is being governed.  Appropriately, in 99.9% of cases, these situations are resolved quickly and amicably before the homeowners or boards even consider the possibility of litigation.  Here are the key steps that homeowners and board members should take to resolve issues before they become disputes:

1.   Every homeowners association should adopt a policy, as required by Colorado law, that outlines the procedures to be followed when disputes arise between homeowners and the association.  

2.   All parties should be careful not to react on an emotional level to a situation before they have all of the information needed to fully assess the matter.  This includes learning the facts associated with the situation and whether the governing documents or Colorado law control any aspect of the matter.

3 .  Once the parties are fully informed, they should communicate with each other in an appropriate and amicable manner.  When parties become emotional and egos enter the picture, issues can quickly evolve into disputes that are difficult to resolve.

 4 .  If parties are unable to reach an amicable resolution through negotiations, they should seek assistance from an independent mediator to help them navigate the path to resolution of the matter. 

Contentious disputes never serve the best interests of homeowners or associations.  By nipping conflicts in the bud before they flower into full scale disputes, all parties will do their part in creating livable communities.

Posted By Molly Foley-Healy In Legislative Miscellaneous 2 Comments Permalink

On September 26, 2007, the Denver Board of Water Commissioners voted to increase water rates for 2008 to cover rising costs associated with maintaining, improving and expanding Denver's water system.  Denver Water is the largest supplier of water in Colorado with over 1 million customers in Denver and surrounding suburbs.  Denver Water has reported that the increased rates will vary "depending on the amount of water a customer uses and whether they are inside the city limits or served by a suburban utility with a Denver Water contract." 

A new class of customers with dedicated outdoor irrigation taps called "Other Irrigation" has been established.  This new class is reportedly made up primarily of commercial, industrial and governmental entities and "will pay seasonal rates up to 10% higher than what they are currently paying during the summer."  However, Denver Water has reported that "Some irrigation-only customers, generally homeowner associations, were put into a "Single Family Residential Common Area Irrigation" class earlier in 2007."  Presumably, this class of customers will not be impacted by the 10% increase for "Other Irrigation" customers.  We recommend that representatives of associations that are "irrigation-only" customers with Denver Water check to ensure that your associations have been classified as "Single Family Residential Common Area Irrigation." 

Posted By Molly Foley-Healy In Legislative Miscellaneous 0 Comments Permalink

On August 23, 2007, we notified you in a posting on HOA Legi-Slate that a new Department of Homeland Security (DHS) Rule, Safe Harbor Procedures for Employers Who Receive a No-Match Letter, was slated to go into effect on September 14, 2007.  The Rule addresses the implications for employers who knowingly retain the employment of unauthorized aliens and steps employers should take to avail themselves of "safe harbor" when receiving notice from the Social Security Administration (SSA) or DHS that records an employer submits relative to an employee do not match SSA or DHS records.

On August 31, 2007, United States District Court Judge Maxine M. Chesney of the Northern District of California stayed implementation of the Rule when she signed a Temporary Restraining Order and Order to Show Cause Regarding Preliminary Injunction (TRO).  In the TRO, Judge Chesney found that the Plaintiff's "raised serious questions as to whether the new Department of Homeland Security rule is inconsistent with statute and beyond the statutory authority of the Department of Homeland Security and the Social Security Administration.  The Court also finds that Plaintiffs have demonstrated that the balance of harms tips sharply in favor of a stay based on Plaintiffs' showing that they and their members would suffer irreparable harm if the rule is implemented while Defendants would suffer significantly less harm from a delay in the implementation of the rule pending consideration of Plaintiffs' claims."  The Plaintiffs and critics of the Rule contend that implementation of the Rule will have a dramatic and detrimental impact on the workforce in the United States. 

DHS has been ordered to appear on October 1st in United States District Court to show cause why the Rule should be implemented and why a preliminary injunction should not be issued further delaying implementation of the Rule.  We will provide you with updates on implementation of the Rule as they occur.  In the meantime, if you receive a letter from SSA or DHS indicating that the records you submitted on an employee do not match SSA or DHS records, we recommend that you comply with the steps outlined in our August 23rd posting. 

Posted By Molly Foley-Healy In Legislative Miscellaneous 0 Comments Permalink

As a manager, member of the board of directors or architectural control committee of your community association – have you ever had a resident try to justify paving or chipping their entire yard as a xeriscape permitted by Colorado law? Have you ever heard of a “xeriscape” or whether Colorado law addresses it at all? Well pitch the tar and pick-up your gardening gloves, because this entry of HOA Legi-Slate will give you an overview of the basics of Colorado law relative to xeriscaping.

What exactly is a Xeriscape?

Before addressing how Colorado law regulates the manner in which associations are permitted to control landscaping and xeriscaping, it’s important to understand exactly what a “xeriscape” is. The Colorado Revised Statutes, at section 37-60-126(11)(b)(IV), defines “xeriscape” as “the application of the principles of landscape planning and design, soil analysis and improvement, appropriate plant selection, limitation of turf area, use of mulches, irrigation efficiency, and appropriate maintenance that results in water use efficiency and water-saving practices.” Clearly, the legal definition of xeriscape does not include the use of paving or chipping in lieu of an attractive landscape.

In Xeriscape Colorado - The Complete Guide, authors Connie Lockhart Ellefson and David Winger write that “Xeriscape is a fancy, trademarked word for purposefully creating a beautiful, restful outdoor environment without consuming thousands of gallons of expensively purified water in the process. And we’re not talking gravel and cacti here (unless you love the particular exotic Southwest look). Xeriscape can easily be beautiful, lush and adaptable to most any landscape style, just as it was always intended to be.” For a discussion of the principles of xeriscaping, designing xeriscapes, and information on grass and plant selection – we recommend that you take a look at this excellent publication.

How has the Colorado Legislature Addressed Xeriscaping in Community Associations?

Following the drought of 2002 in Colorado, the issue of water conservation took center stage. The lush yards and green ways so commonly found in community associations required huge amounts of water to keep healthy and vibrant. Not only was water rationed for the purpose of the upkeep of grasses and plantings, but the costs associated with the little water available sky rocketed for homeowners and associations. As part of a much broader water conservation and drought mitigation plan, the Colorado legislature took action to regulate the types of landscapes that may be required by community associations.

Section 37-60-126(11)(a) of the Colorado Revised Statutes provides that “Any section of a restrictive covenant that prohibits or limits xeriscape, prohibits or limits the installation or use of drought-tolerant vegetative landscapes, or requires cultivated vegetation to consist exclusively or primarily of turf grass is hereby declared contrary to public policy and, on that basis, that section of the covenant shall be unenforceable.” In the statute, a “restrictive covenant” is broadly defined as “any covenant, restriction, bylaw, executive board policy or practice, or condition applicable to real property for the purpose of controlling land use, but does not include any covenant, restriction, or condition imposed on such real property by any governmental entity.” 

In practical terms, what does this statutory provision mean? First, it means that associations cannot require residents to install landscapes made up of more than 50% turf grass.  Turf grass is defined by statute as “continuous plant coverage consisting of hybridized grasses that, when regularly mowed, form a dense growth of leaf blades and roots.” Second, associations cannot require the installation of landscapes that do not permit the use of drought-tolerant vegetation. Third, associations can regulate the use of things like concrete, asphalt, rock and artificial turf since they are not considered xeriscape materials. Fourth, associations can require residents wishing to install a xeriscape - or to change an existing landscape to a xeriscape - to follow the association’s architectural submission and approval requirements. The requirements for traditional landscapes and xeriscapes should be consistent. Finally, associations are permitted to require residents to adequately water all landscapes, including xeriscapes, unless a water restriction is in place. Upon the lifting or expiration of a water restriction, associations must provide residents with a reasonable period of time to revive turf grass. If turf is not able to be revived, associations are permitted to require residents to replace the turf grass.

When you hear the word “xeriscape” it doesn’t necessarily bring to mind beautiful and lush landscapes. This is particularly true when the concept is misinterpreted to be a “zero-scape” – a yard characterized by chipping or paving. However, if you take a look around, we bet you will see aesthetically beautiful xeriscapes that assist in the conservation of our vital resource – water. 

Posted By Molly Foley-Healy In Legislative Miscellaneous 4 Comments Permalink

On April 20, 2007, Governor Ritter signed HB 1338 - the Homeowner Protection Act - into law.  HB 1338 is designed to work in conjunction with the Construction Defect Action Reform Act (CDARA) and the Colorado Consumer Protection Act (CCPA) - particularly provisions of the Deceptive Trade Practices section of the CCPA.  HB 1338 will make any attempt by builders and construction professionals to waive the rights, remedies or damages available to homeowners for construction defects under the CDARA or CCPA unenforceable.  HB 1338 went into effect immediately upon being signed by the Governor and will apply to any related actions filed in a court of law on or after April 20th, regardless of when a disputed waiver was executed.

Debate between attorneys and other industry professionals and stakeholders is ongoing regarding the impact of HB 1338 on a variety of waivers routinely used by construction professionals.  There is some speculation that lawsuits may be filed in an effort to clarify and limit the scope of HB 1338.  In an upcoming issue of Community E-ssentials newsletter, we will examine the types of waivers by builders and construction professionals we believe will be unenforceable under this new law.

Posted By Molly Foley-Healy In Legislative Miscellaneous 0 Comments Permalink

HB 07-1157, the foreclosure clean-up bill, discussed in this post, is on its way to Governor Ritter, who is expected to sign it. However, although not surprisingly, the version that is leaving the legislature is not the version that was originally introduced. Most notably, a group of provisions that were to take effect on July 1, 2007 will now take effect on January 1, 2008, which grants those who handle foreclosures more time to prepare for the changes. Included under the new effective date, are the  provisions that will expand the time homeowner’s will have to cure delinquencies before a foreclosure sale and the elimination of the homeowner’s right to redeem their property after a foreclosure sale.

Unfortunately, this bill does not cure our and CAI’s Colorado Legislative Action Committee’s concerns regarding the new statutory requirement for an entity’s address to appear on the instrument creating a lien to preserve the right to notice of foreclosure. Since an association’s lien is created by the recording of its declaration, which never includes an address, the concern is that an association will not receive notice of a foreclosure and will not be aware of its right to the superlien (Click here to read an article which discusses the superlien). We will keep you posted on developments to cure this problem as they arise.

Posted By HindmanSanchez In Legislative Miscellaneous 0 Comments Permalink

• Homeowners should have the ability to assert their legal rights and remedies as provided for in the Construction Defect Action Reform Act of 2003.
• Non-negotiable waivers are now being routinely used by construction professionals in home sales contracts, and even in association governing documents, to waive the rights of homeowners to assert those legal rights and remedies.  Passage of HB 1338 will make such waivers unenforceable and will preserve the essential legal rights and remedies of homeowners to take legal action to correct construction defects.

Posted By HindmanSanchez In Legislative Miscellaneous 1 Comments Permalink

On March 8, 2007 Representative Pommer and Senator Veiga introduced House Bill 07-1338, entitled The Homeowner Protection Act ("HB 1338").  HB 1338 makes waivers of certain rights and remedies by residential property owners with respect to transactions with construction professionals void as against public policy.  The bill has passed committee and the full house on March 28 and now moves to the Senate where the vote is expected to be close.  Not surprisingly, it is strongly opposed by the Colorado Association of Home Builders.  HindmanSanchez and the Legislative Action Committee of CAI in turn both strongly support the bill.

HB 1338 is designed to work with the Construction Defect Action Reform Act of 2003 ("CDARA"), which provides for certain legal rights and remedies to owners of residential properties in dealing with construction professionals, such as builders and subcontractors.  HB 1338 seeks to make any attempt by a construction professional to have an owner waive these rights unenforceable.

Proponents of HB 1338 argue the Bill is needed because builders are using unreasonable waivers against homeowners that are non-negotiable.  These waivers limit consumer options and make it extremely difficult, and oftentimes impossible, for owners of defective homes to hold builders accountable and get their problems corrected.  Proponents further argue that allowing the use of such waivers undercuts the protections and procedures set forth in CDARA and does not allow CDARA to work as intended.

Call your Senator today to show support for this bill.

Posted By HindmanSanchez In Legislative Miscellaneous 0 Comments Permalink

In our December 26, 2006 blog post we wrote about the proposed plan on the part of the Denver Water Board to significantly increase irrigation water rates for single family homeowner associations. It now seems the Water Commissioners are taking another look at this. Click here to view a presentation made by staff to the Commissioners on the 24^th. Page 3 lists the options discussed. The following is a summary of the highlights of the workshop as offered by Marie Bassett a staff member for the Denver Water Board.

The Commissioners were not unanimous in their preference. The direction staff received was that the Board would prefer one of the seasonal rate designs as opposed to the “no change” or “uniform flat rate”. As this is a draft staff will again check all the math. All three rate options (uniform, design #1 and design #2) are revenue neutral. Each will theoretically raise the same amount of revenue, but all will generate less revenue than the 2007 rates previously announced for the irrigation taps.

The last page gives typical examples. What the table does not include is the annual bill that the same HOA usage would have paid at 2006 rates.  All 2007 proposals will generate more revenue than would have been paid by the same accounts in 2006 rates. 

The Board will consider a specific proposal at their meeting on February 14. The proposal will be available on February 9. Any member of the public may submit comments to the Board. General comments should be submitted prior to February 7 so the Board will have time to read them as they study the proposal. Comments should be submitted directly to Marie Bassett. The public is also welcome to speak at the Board meeting. The Board will take comments on any agenda item. The meeting will be held at the Water Board headquarters located at 1600 W. 12th Avenue, Denver, CO 80204. 

If you would like to meet with staff to discuss this proposal or any other issues, they would be glad to do so. Marie Bassett’s telephone number is 303-628-6656 and her email is Marie.Bassett@denverwater.org.

Posted By HindmanSanchez In Legislative Miscellaneous 1 Comments Permalink

HindmanSanchez recently prevailed at trial requiring a homeowner to remove xeriscaping that was installed without prior approval. The homeowner violated the covenants by installing xeriscaping without prior approval and claimed by law he could not be denied the right to install xeriscaping. The Homeowners Association had adopted a xeriscape policy as a result of SB 100 which required the owner to install 50% sod in just the front yard and he had to have prior approval for any landscaping. The county court judge agreed that the Association was within its rights to demand these things and it did not violate the new provision adopted by SB100 dealing with xeriscaping.

That provision [CRS 37-60–126(11)(a)] states that a covenant restricting or limiting xeriscaping or requiring the primary or exclusive use of turf grass is void and unenforceable regardless of when the covenant came into existence.

In addition the provision states associations may not place more procedural requirements on owners who seek approval for xeriscaping than already exist in the governing documents. [CRS 37-60–126(11)(b)(1)]

In this case the Association required only 50% of the front yard to be in turf, not the entire yard or even 50% of the entire yard. Also the requirement to have the owner’s plan approved in advance was no more stringent than the requirement to have non-xeriscape or regular landscaping plans approved in advance.

Posted By HindmanSanchez In Legislative Miscellaneous 0 Comments Permalink

According to a recent memorandum to the Denver Water Board from the manager of Rate Administration, John Wright single family residential HOA’s could see a 40% rate increase in 2007 for those HOA’s using less than 350,000 gallons annually and a 40%-90% rate increase for HOA’s using more than 350,000 gallons in annual consumption. The proposed rate structure increases applies to irrigation – only taps.

This comes as quite a surprise (some might say shock) to HOAs and managers since as late as October, 2006 the Water Board was projecting rate increases in the neighborhood of 7%. As expected, a number of large single family HOA’s have voiced their concerns and objections to the proposal rate structure, however, to date the Board Commissioners and staff have not shown any inclination to alter it.

Posted By HindmanSanchez In Legislative Miscellaneous 4 Comments Permalink

This Denver Post article reports that Weld County has the highest rate of foreclosures in the country, with the Denver metro area coming in fifth. Associations rarely remain unaffected when lenders foreclosure on properties within the community and often lose substantial amounts of money due to unpaid assessments. Hopefully, the recently enacted foreclosure law will succeed in lowering the rate of foreclosures in Colorado once it takes effect. In addition, click here for a recent newsletter article on how associations can use judicial foreclosure (which is different than the process used by lenders to foreclose) to protect their interests.

Posted By HindmanSanchez In Legislative Miscellaneous 0 Comments Permalink

An association that maintains adequate reserves will find itself in the enviable position of having the funds necessary to cover the unenviable (and usually eventually unavoidable) costs of undertaking major maintenance and replacements of the community's common elements. Three potentially unappealing options face associations who haven't planned ahead by adequately reserving: 1) do nothing and allow the situation to deteriorate further, decreasing property values; 2) impose a special assessment; or 3) attempt to secure a loan, which will need repayment eventually. Even before a common element needs replacement, a lack of adequate reserve funds can hurt the ability of prospective buyers to obtain financing. In addition, some insurance companies have expressed reservations about renewing the master insurance policies of associations with underfunded reserves.

Posted By Loura K. Sanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Legislative Miscellaneous 1 Comments Permalink

The Planning and Zoning Commission of Madison, Mississippi recently adopted an interesting resolution - any violation of an HOA's covenants will be equated to violating a city ordinance. The purpose of the resolution is to give "homeowners associations more teeth" in enforcing their covenants. The resolution, which has been given the legal okay by the city attorney, awaits the final approval from the city's mayor and Board of Aldermen. Read more about this "thinking outside the box" solution here.

Posted By HindmanSanchez In Legislative Miscellaneous 0 Comments Permalink

The Denver Post reports that the Governor signed HB 06S-1017 this morning. The law places new requirements on all Colorado employers to verify the legal work status of new hires as of January 1, 2007. For more information on the details of the new law, as well as a discussion of what may qualify an association as an "employer," please click here.

Posted By HindmanSanchez In Legislative Miscellaneous 0 Comments Permalink

Governor Owens is expected to sign HB 06S-1017, one of the bills that originated out of the recent legislative special session that focused on immigration issues. (As reported by the Denver Post, the fact that a special session was held at all caused much discussion - let alone the bills that resulted from it.)

Posted By HindmanSanchez In Legislative Miscellaneous 0 Comments Permalink

The Colorado Clean Indoor Act ("Act") will take effect on July 1, 2006. As discussed in this post, the Act will prohibit smoking in most indoor public establishments in the state. The Act provides fines for those who own, manage, operate, or otherwise control an area in which smoking is prohibited if they fail to enforce the smoking ban. The possibility for managers and board members to incur fines under the Act makes it important to understand the Act's scope.

Posted By HindmanSanchez In Legislative Miscellaneous 0 Comments Permalink

As reported last month in this post, Colorado led the nation in foreclosures for the month of March. This Rocky Mountain News article reports that, unfortunately, Colorado has retained this spot for the month of April. As discussed in this post, a bill is before the Governor that proposes several changes to Colorado's foreclosure laws. It is hoped that several of these changes will help owners to keep their homes. It will be interesting to see how this proposed foreclosure bill may affect Colorado's foreclosure numbers if signed into law.

Posted By HindmanSanchez In Colorado Homeowner Association Law , Foreclosures , Legislative Miscellaneous 0 Comments Permalink

House Bill 06-1387, which passed its third reading in the Senate on May 3, 2006, but which has not yet been signed into law, contains numerous proposed revisions to Colorado's foreclosure laws (C.R.S. § 38-38-101, et seq.). The bill is now on its way to the Governor for consideration. The intent of the bill is to modernize and simplify the process of foreclosures within Colorado, while also providing owners with a more realistic opportunity to retain ownership of their property. The most significant change to the bill as it relates to community associations is the expansion of the time in which to cure and the elimination of the owner's right to redeem.

Posted By Loura K. Sanchez In Colorado Homeowner Association Law , Foreclosures , Legislative Miscellaneous 0 Comments Permalink

Governor Owens signed HB 06-1175, the 'Colorado Clean Indoor Act', into law on March 27th. HB 1175, sponsored by Representative May and Senator Grossman, institutes a state-wide ban on smoking in almost all public establishments. (The new law exempts cigar bars, casinos, and DIA's smoking lounge.) Effective on July 1, it is not only restaurants and bars that must go smoke-free - condominium, loft, and townhome residents will also need to think twice before lighting up a cigarette.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Legislative Miscellaneous 4 Comments Permalink

On May 1, Governor Owens signed SB 2 into law. SB 2 will require sellers to disclose in the sales contract whether the property was ever used as a methamphetamine laboratory. (The details of SB 2 are discussed in this post.) This law will go into effect on January 1, 2007, and will apply to all residential sale contracts offered and entered into on or after that date. Associations should be aware that if they are selling property, this disclosure requirement will apply to the sales contracts used.

Posted By HindmanSanchez In Legislative Miscellaneous 0 Comments Permalink

The Larimer County Republican Party passed a resolution concerning HOAs earlier this month. Resolution #24 begins by declaring that HOAs impact the property values, property and personal rights, as well as the living environment of those living within the HOA community. It goes on to state that many HOAs have abused their authority and have failed to follow the law or meet their fiduciary duties. The Resolution then urges the Colorado legislature to make HOAs legally accountable to their members by allowing members to take pro se legal action against their association to recover damages, remove board members etc. (This resolution, however, is suggesting legislation to the General Assembly and does not change current state law.)

Posted By HindmanSanchez In Colorado Homeowner Association Law , Legislative Miscellaneous 0 Comments Permalink

HB 1090, discussed in this Denver Post article and this post, passed its third reading in the Senate today. HB 1090 would allow victims of childhood sex abuse more time to file lawsuits against private institutions that knew or were on notice of the "propensity of an employee, volunteer, representative, agent, or subordinate of the employer" for engaging in unlawful sexual conduct and who failed to take reasonable steps or institute reasonable safeguards to prevent any such conduct.

The Governor has not given any indication as to whether he will sign or veto the bill. If the bill passes, we will be providing guidance on how to safeguard your association from these types of claims.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Legislative Miscellaneous 0 Comments Permalink

This Denver Post article reports that Colorado had the highest ratio of foreclosures in the country this past March. Hopefully, if HB 06-1387, entitled 'Concerning Real Estate Foreclosures,' passes, the number of foreclosures in Colorado will decrease. Sponsored by Representative Garcia and Senator Veiga, the bill would allow the homeowner a longer period to cure a default before the foreclosure sale by lengthening the pre-sale cure period by 65 days. (Currently it is 45 to 60 days.) To do this, the owners' redemption period, currently 75 days after the sale, would be eliminated. Public trustee sales would, therefore, occur 110-125 days after the recording of the Notice of Election and Demand ("NED"). Click here for a summary of the Colorado foreclosure process.

Posted By HindmanSanchez In Foreclosures , Legislative Miscellaneous 0 Comments Permalink

SB 06-02, entitled 'Concerning Mandatory Disclosure In Connection With The Purchase Of Residential Real Property Of Whether The Property Has Been Used As A Methamphetamine Laboratory,' is sponsored by Senator Shaffer and Representative Pommer. The bill, which is on its way to the Governor, addresses the health harms caused by the lingering chemicals left after other discernable signs of methamphetamine production have been cleaned up.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Legislative Miscellaneous 0 Comments Permalink

SB 143 - which would have allowed victims of childhood sex abuse to sue private institutions on vicarious liability claims - has generated much controversy as reported in this Denver Post article. (SB 143 is discussed in this post.) In response, Senator Fitz-Gerald has decided to add the key provisions contained in SB 143 into HB 1090, which also addresses sex offenses, including those committed against children. (HB 1090 has not escaped controversy either as related in this Denver Post article.) The unofficial preamended version of HB 1090 is available here. (This version includes the Senate committee amendments that have not yet been adopted by the entire Senate on Second Reading.)

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Legislative Miscellaneous 0 Comments Permalink

SB 143, 'Concerning The Statute of Limitations for Civil Actions Alleging Unlawful Sexual Conduct,' is sponsored by Senator Fitz-Gerald and Representative Madden. This bill seeks to provide further protections to child victims of sexual abuse, including holding institutions accountable for preventing sexual abuse.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Legislative Miscellaneous 0 Comments Permalink

Be a part of making the voice of HOAs heard at the Capitol by registering for CAI Day at the Capitol by Monday, February 13 and then contacting your legislators and inviting them to the luncheon at the Warwick Hotel. (Not sure who represents you? Click here to find this important information out.) Let your legislators know that their presence is important to you! Click here for more event information and registration details.

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"Anyone who came here expecting a farewell address will be sorely disappointed. There will be a time and a place for that, but not here, not now. My agenda is ambitious - and in the words of my favorite president, Ronald Reagan, the message to you today is: 'Put on your work shoes - we're still on the job.'"

With those words, Governor Owens delivered his State of the State address yesterday morning, citing Colorado's progress on such issues as tax-reform, transportation, and children's health care, along with commending Coloradoans for their immediate and generous assistance to the victims of Hurricane Katrina, before stating, "My friends, the state of our state is indeed strong."

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Last year we watched the constantly evolving Senate Bill 05-100 bounce back and forth from the Senate and House floors with brief detours in committees. It made us think - we all know that laws begin as bills, but really, how exactly does the legislative process in Colorado work? Well, we know now that bills are the written form of proposals to be discussed by the Colorado General Assembly, that they all have a sponsor, and members of the General Assembly are limited to introducing five bills (unless the legislator waits until after December 1 to ask for bills to be drafted - then they get only two). Read this article on the Legislative Process and never wonder again how Colorado's laws are created.

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